Assume the returns on Stock X were positive in January, February, April, July, and November. During the other months, the returns on Stock X were negative. The returns on Stock Y were positive in January, April, May, July, August, and October, and negative the remaining months. Which one of the following correlation coefficients best describes the relationship between Stock X and Stock Y?
A)−1.0
B)−.5
C)0
D).5
E)1.0

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The Answer of Assume the returns on Stock X were positive in January, February, April, July, and November. During the other months, the returns on Stock X were negative. The returns on Stock Y were positive in January, April, May, July, August, and October, and negative the remaining months. Which one of the following correlation coefficients best describes the relationship between Stock X and Stock Y?
A)−1.0
B)−.5
C)0
D).5
E)1.0

Assume the Returns on Stock X Were Positive in January